State-run Indian Oil Corporation (IOC) posted a net profit of Rs 284.4 crore for the second quarter of the current financial year ended September 30, against a loss of Rs 7,047 crore for the same quarter in the previous year. The dip in crude oil prices helped IOC cut losses on fuel sales. However, its sales were down at Rs 60,392.9 crore in Q2 versus Rs 74,705.8 crore during Q2 last fiscal. The under-recovery on account of non-realisation of market-related prices for PDS kerosene and LPG (domestic) for the second quarter was Rs 4,175 crore. The company's gross refining margin for the six months ended September 30 stood at $5.42 per bbl, while it was at $6.36 per bbl in the same period last year.

BM Bansal, director (projects & business development), said IOC sold 16.726 million tonnes, including exports, during the second quarter of 2009-10. Its eight refineries registered a combined throughput of 12.412 million tonnes, with a capacity utilisation of 99.9%. Its pipelines network also registered 83% capacity utilisation with a throughput of 15.536 million tonnes for the same period. Borrowings rose to Rs 47,912 crore at the end of September 30 from Rs 44,972 crore as on June 30.

"We have not been issued Rs 7,135.50 crore worth of oil bonds for the April-September period," IOC director (finance) SV Narasimhan said. For Q2, it got Rs 1,799 crore from upstream firms to cover for losses on petrol and diesel. IOC earned $3.62 on processing every barrel of crude oil in the quarter as against a negative margin of $4.03 a barrel the previous year. The government, which has not allowed the retailers IOC, Bharat Petroleum and Hindustan Petroleum to raise fuel prices in step with cost, was to compensate them for loss on cooking fuel through oil bonds, while those on petrol and diesel were to be met through subsidy from upstream firms like ONGC. Shares of IOC closed at Rs 314.10 down 0.36%.

Meanwhile, Oil India's net profit rose 0.79% to Rs 722.56 crore in the quarter ended September 30, against Rs 716.85 crore in the corresponding period last year. Total operating income, however, declined to Rs 2,143.07 crore in the July-September quarter from Rs 2,194.14 crore the previous fiscal.

The Oil India issue, which closed on September 10, received bids 31 times the total number of shares on offer following an overwhelming response from institutional investors. Against a total 2.65 crore shares on sale, the issue received bids for 81.4 crore shares. The portion of shares (1.44 crore) reserved for qualified institutional buyers saw bids 54 times the number of shares available under the category. OIL closed at Rs 1,113.70 down by 1.63%.

A Mumbai-based analyst said the slide in crude prices has been a common factor for narrowing down of losses of HPCL, BPCL and the net profit of Rs 284.4 crore earned by IOC.

Exploration and production major ONGC's net profit increased 6% at Rs 5,089.64 crore during the second quarter compared to Rs 4,808.41 crore during the corresponding period last year. This is ONGC's first rise in five quarters, as its subsidy-sharing burden eased. Depsite the government not issuing oil bonds, oil marketing companies improved their performances.